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Well to me there's a big difference in some XP programs that run better with 36 bit. 16 bit is too low, but 24 bit looks a lot better. Give it a try, your icons will look smoother and especially if you added themes the colors will be noticeably better.

I found an easier way to get 24 bit colors with integration on here.
1. Run regedit in XP.
2. Navigate to [HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows NT\Terminal Services].
3. Add a DWORD Value named "ColorDepth" w/o parenthesis.
4. Right-click it, modify, then put "4" in the Value data.
5. Restart XP mode.

On another note, if you clicked the link above, you'll notice that he said 32-bit color is possible with XP mode, but you'll have to make extensive changes to the RDP!

I'm not entirely sure why, but maybe you can go to Add/Remove Programs, click Add/Remove Windows Components tab, then make sure you have Networking Services checked. Or maybe you didn't enable integration which might automatically install it.

You probably disabled it when disabling unnecessary services. Open up "services.msc" find "Terminal Services" right-click it and put it on "Automatic". Also make sure you have "Remote Procedure Call" on automatic.

Edit: And if all else fails, you can just create your own Terminal Services folder and put in the required entries. I've attached a screenshot of how it should look like as well as the reg file should you need it.

I got XP mode to display 24-bit color with integration!

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